No two SMSFs are the same, so what’s with low-cost, flat-fee bundling?
The ATO and ASIC have been monitoring the practices of Auditors and are closely watching bundled packages and cut-price services.
Recent litigation against Auditors has highlighted the requirement to seek detailed documentation to confirm the value of assets, the evidence behind market values, the recoverability of loans and also to clearly communicate issues to Trustees as well as to their Advisors. Indeed, qualified SMSF Audits are expected to rise in 2019 as a result of these court cases and so too the amount of work required for a quality audit.
The extra time and effort that’s now required in completing audits for more complex funds means that cheaper Auditors may have to move to a staggered fee model for complex funds. If they don’t there is a real concern that:Simple fund audits will be subsidising more complex ones, and/orTrust in a quality audit will be compromised.We believe that the fee for an audit needs to reflect the complexity of the fund. Apples for apples pricing gives assurance to both the Accountant and Trustee that the fund is compliant… and prevents misplaced trust in a too-cheap audit.
As Australia’s most trusted independent SMSF auditor, we offer quality audits all undertaken here in Australia.
If you'd like more information, please contact Saul SMSF.